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John Tullis
Customer Relationship Management
John TullisDePaul [email protected]
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John Tullis
Agenda
IntroductionCurrent SituationGrounding CRMApproaching CRMNext Steps
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Current Situation
Business visionCustomer relationship strategies supporting the visionWho are the company's customersWhat are the top three:
business issuescustomer relationship issuesinformation systems
How does your customer relationship add value for the customer and to the company bottom line
What is the greatest obstacle facing customer relationship todayWhat is the company's expectation from customer relationship
management e.g. customer sat, ROI etc.
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Grounding CRM
Recent cross industry CRM engagements have revealed several priorities among executives concerning customer relationships
Knowing about customers
Understanding their current and future needs
Maximizing the yield from that relationship
Cost containment / value
Service consistency; enterprise - wide
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Grounding CRMThese engagements have further shown multiple business purposes
among companies for pursuing CRM
Increasingly competitive marketsFragmentation and disintermediationGlobalization and deregulationNew and nontraditional competitors
Customer sophisticationEasy access to informationConvenience and personalization expectationsExtended value in products and services
e-Business revolutionAnytime, anywhere, anyhow accessCollaborative dialog v. one-way marketing communication
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Grounding CRM
... the same can be said for goals and impact to the organization...
Unique goals at the tactical level however strategically...Provide consistent customer value add experiences
over multiple access points across key company capabilities within each line of business
Organization ImpactVision / Cultural - customer view v. our viewCustomer ownership/responsibility
information, intelligence, accessCommunication
customer, company, employee
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Grounding CRM
... and impact to the value of the customer interaction
"Pre CRM" Industrial economic model
add value to an input and pass it along maybe insufficient to maintain leadership
CRMInformation age model
Recognizes customers consume AND create valuecustomer to customercustomer to companyenvironments that create knowledge advantage
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Essential Process Capabilities
ENABLING INFRASTRUCTURE
Ideal
Customer Value
I. Customer "Vision"-Optimum possible "Value"-Attributes of "Ideal" delivery (Customer Requirements )
II. Company "Vision"
-Premier delivery of the customer-defined "Value"
MOTs
Grounding CRM
CRM: Alignment and linkage between what customers value ...and your own capabilities to deliver
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Grounding CRM
Customer Relationship Management Value Chain
How do we build and sustain customer loyalty ?
Customer Retention
Customer Development
Who are the profitable customers ?
How do we attract them ?
Customer Acquisition
How do we deliver what the customer wants, how they want it, when they want it ?
Experience indicates that CRM requires support by an enterprise-wide value chain that encompasses the life cycle of the customer .
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Grounding CRM
Moving customer relationship towards a enterprise-wide view requires more than concentrating on a single function or activity...
... rather it requires an approach that views multiple activities... crafted into a "framework"... that provides a "blueprint" enabling an excellent customer relationship providing maximum yield.
Simplify and align processes that deliver sustained dialogue and
personalized value
People
Create long-term, high value relationships with customer
chain
Process
Technology
Enable customer choice among multiple enterprise access pointsCollect customer information at every point of contactUse business intelligence to customize marketing/sales/service at every point of contact
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Grounding CRM
Customer actions during lifecycle & business responses
CRM interactions/activities are executed across organizational boundaries throughout the lifetime relationship with the customer.
This "enterprise-wide view" begins with each opportunity to dialog with a customer... no matter how or where in the enterprise.
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Grounding CRMExperience shows an enterprise-wide view to customer relationship requires a comprehensive STRATEGY...
Focused on customer wants and needs, with processes
designed to ensure timely, accurate, flexible and complete responses creating VALUE that is customer centric.
"HOLISTIC" in approach to the development and management of customer relationship which effectively imbeds customer service as a enterprise asset.
Effectively establishes ACCOUNTABILITY within the company for results, ensuring delivery of value.
COMMUNICATED, understood and fully supported by leadership and staff at all levels.
Focused on CONTINUOUS IMPROVEMENT through systemic learning from past experience, supported by capturing and sharing lessons learned
Compared with other companies to establish an external BENCHMARK as a measure for improvement.
...which forms the foundation for development of a Customer Relationship Management (CRM) framework.
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Grounding CRM
... and must consider more than the traditional customer service environment...
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Grounding CRM
... development of a CRM framework begins with understanding customer expectations/perceptions and the capability to deliver on wants and needs...
Customer Perceptions of Delivered Product or Service
Customer Expectation of Promised Product or Service
Provider's Perception of Customer Expectations
Product or Service Standards or Measurements
Actual Product or Service
G A P
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Grounding CRM
...identifying the hierarchy of customer needs and wants, provides specific direction for CRM framework formation...
The "hierarchy" of customer needs identifies behavior drivers:
(the "must-haves")Attractors
(things that would delight the customer)
Satisfiers
Capabilities
Enablers
Attractors/Differentiators
Satisfiers
Basic Expectations
Cus
tom
ers’
Vis
ion
Sat
isfa
ctio
n
Time
Satisfiers
Advantage
Attractors/Differentiators
Basic Expectations
Parity
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Grounding CRM
Transaction Stress Points& Service Standards or "Moments of Truth"
Customer "Vision" Of Ideal Relationship
EnablingInfrastructure
Customer-defined Relationship Vision
"I want...." "I need...." "I would be
delighted by..."
Best of Breed/World class: Service Standards Performance
Capabilities
Best of Breed/World class Actionable
"Design Points"
Essential Service ProcessCapabilities
... thus ensuring a successful CRM framework grounded in customer need and want that drives appropriate enterprise capability and enablement...
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Grounding CRM...which forms the foundation for design and development of a CRM blueprint.
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Grounding CRM"Grounding" CRM within the enterprise presents solid value propositions and can be measured.
Key Value Propositions:Enhanced ability to offer personalized incentives and "lock-in" satisfactionReal time insight for adapting current products/services Cost proficient regular customer contact Early warning of customer dissatisfaction and defection Venue from which to "continuously" earn trust with the customerAbility to continuously update individual and group needs and wants Reduced marketing and access costs Venue from which to gain and provide knowledge
Key Metrics:Operational expensesTransaction cycle timeCustomer satisfaction
OverallEnd of Transaction
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Approaching CRM
Successful CRM projects provide insight for vision development... Critical Success Factors
Addresses clearly defined business objectivesExecutive sponsorship / champion. Customers are consulted Recognize the CRM transformation is evolutionary and not a 'One
Time Effort Realistic budget and implementation timetableExecute an iterative phased rollout that balances dependencies, benefits,
and assimilates the new approach Change management (human behavior) issues are addressed and
ongoing
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Approaching CRM Recent Experience - Retail Challenge: Preempt margin erosion in a "soon to be" commodity
driven market through improved customer relationship
Key Issues: Current "CRM" strategy - ad-hoc Org. focus - "burn & turn" Market strategy - something for everybody Backoffice - weak Frontoffice - missing Approach: Rebrand & focus on "premium" market segment Wallet share and market share Minimize "cut-rate" product suite Key transformation activities - multiple IBM practices
Strategy developmentBO/FO process reengineeringAccess point development / redesign
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Approaching CRM Recent Experience - Utilities Challenge: Maintain/increase marketshare while managing
deregulation pressures and int'l competition
Key Issues: Reduce customer service ops costs - the more the
merrier Culture transformation - what customer Technology - bits & bytes will do it right Skills requirements - who to keep Approach: Consolidate customer service operations Reengineer/develop CRM processes Key transformation activities
CRM transition strategy developmentTechnology / process design & implementationFacilities transition planningEducation & training planning and implementation
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Approaching CRM
Customer Relationship Management Value Chain
Manage Customers
Customer Retention
Customer Development
Manage Markets
Customer Acquisition
Manage Sales
The CRM Value Chain is leveraged through three key customer relationship capabilities.
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Approaching CRM
Managing Markets.
Defined business mission, objectives and current position within the marketplaceunderstands the enterprise
understands marketplace dynamics, economic trends, and technology understands the key demographic forces
understands customers' wants and needs
Identified and evaluated attractiveness of relevant segments in the marketplace. developed customer profile "triggers" for key, attractive market segments
assessed current and future product/service offerings in relevant marketsassessed strengths and weaknesses in relevant market segments.
Determined the "face-to-market" approach for relevant market segments.understands profitability and lifetime value of target customers.knows market segments that align with its core capabilities, strengths, weaknesses
knows value propositions for all market segments
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Approaching CRMManaging Sales.
Defined channel management plandeveloped criteria for selecting channel participants.optimized channel offerings mix.identified resources for channel plan.
Developed opportunity management processes.able to capture, qualify, disseminate and track opportunities.procedure for assigning resources to opportunities.aligned opportunity process with the channel management plan and market
segment strategies. capability to create and manage customer profiles.
leverages usage of technology for sales opportunity management.
Developed the appropriate enablers to execute and manage the process.able to provide appropriate training, motivation, compensation and incentive programs.knows which customers are buying its products/services and why.
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Approaching CRM
Managing the customer.
Understands the level of service its customers expect by market segment.customer service strategy is tailored for market segmentscan predict the inquiries that target customers will make customer service plan is aligned with other CRM capability planningcustomer service plan leverages technology, alliances and partnerships.
process for effective complaint capturing and problem resolution in place.
Knows customers’ ease-of-use requirementsknows its target customers' needs for “special handling”.“special handling” procedures are aligned with CRM capability planning.uses customer history to further pinpoint its target customers.
Develops the skills, resources, facilities, and data to efficiently deliver service.processes in place for any employee to capture and access customer input.methods in place to organize customer input, identify patterns & prioritize options,
leverage other customer facing processes (AR, AP etc.) understands satisfaction performance and competitive benchmarks customer satisfaction process is closed-loop
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Approaching CRM
MANAGE MARKETS MANAGE SALES MANAGE CUSTOMER
ORGANIZATION
PROCESS
INFO ACCESS
TECHNOLOGY
FACILITIES
The development method in the buildout of a CRM blueprint focuses on key capability points (KCP) which must be in place and aligned for successful CRM transformation.
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Approaching CRM
CRM "enablers" represent the infrastructure that must be in place to support the essential customer relationship capabilities
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Approaching CRM
Experience indicates that typically a CRM project of this nature is accomplished in iterative project cycles over four phases...
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Approaching CRMThis method of analysis gives a consistent "view" within each phase of our work methods from assessment of the "as-is" environment to deployment of the "to-be" state.
Organization
Process
Info Access
Technology
Facilities
Manage Market Manage Sales Manage Service
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Approaching CRM
PHASE 0 - CRM ASSESSMENTInitiate Project Assess Current EnvironmentConduct / WorkshopsDefine "To Be" EnvironmentDevelop Roadmap Recommendations Prepare and Present Final Report
WeekOne
WeekTwo
WeekThree
WeekFour
WeekFive
WeekSix
WeekSeven
WeekEight
... resulting in a CRM Roadmap showing iterative phase initiatives and project requirements
The Assess & Plan phase can vary depending upon scope but generally executes over a 8-12 week period...
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Next Steps
Customer Feedback
Campaign Tracking
Product & Service Strategies
Segmentation & Selection
Segmentation Strategy
Campaign Development, Management
CustomerCampaign & Market
Management
Customer Market Research
DataHarvesting
Data Mining
Customer IntelligenceManagement
Analyze Profile Score Discover
TrendsAffinitiesPatterns Associations
Customer Contact Management
ChannelOptimization
Call CenterStart up &Consolidation
Contact Center: - Telephony Enablement - Call Center Sales & Service Application - Web Enabled Contact Center
Internet Sales/Service
Other Access Channel Enrichment
Mobile Sales& Service Automation
Field Service & Dispatch
ChannelIntegration
Management
PersonalizedInteractionEnrichment
Enterprise Connectivity
Channel Integration Management
Strategy and Vision
CRM Briefing
CVM Assessment
CRM Strategy
CRM Roadmap